MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--
Intuit Inc. (Nasdaq: INTU) today announced that revenue and operating
income, and diluted earnings per share from its second fiscal quarter
were lower than expected due to the tax season forming more slowly than
usual. The company expects consumer tax revenue to shift to the third
fiscal quarter and therefore reiterated full fiscal-year guidance.

Intuit’s second fiscal quarter ended Jan. 31. For the second quarter,
the company expects to report:

Revenue of $1,010 million to $1,015 million.

GAAP operating income of $15 million to $20 million.

Non-GAAP operating income of $100 million to $105 million.

GAAP diluted earnings per share of $0.04 to $0.05.

Non-GAAP diluted earnings per share of $0.24 to $0.25.

Consumer tax revenue is recognized as returns are filed. IRS data issued
Feb. 6 suggests that the broader tax preparation market is forming later
than usual, with total returns processed through Jan. 27 down 33 percent
and self-prepared e-file receipts down 31 percent compared with last
year. Intuit’s processed consumer tax returns for that same period are
down 29 percent.

“Data points to the tax category forming slowly for all prep methods,”
said Dan Wernikoff, executive vice president and general manager of
Intuit’s TurboTax business. “We believe we have a strong and winning
hand that combines innovation across the end-to-end experience, an
effective go-to-market campaign and great value for taxpayers. One thing
we know about the tax business is that everyone needs to file by April
18. We are looking forward to a strong finish to the season.”

Full-year Guidance

The company expects full-year revenue and operating income for Intuit
and all business segments to meet expectations in line with guidance
issued on Nov. 17. Intuit reiterated full-year revenue, operating
income, and earnings per share guidance. For fiscal year 2017, the
company expects:

Revenue of $5 billion to $5.1 billion, growth of 7 to 9 percent.

GAAP operating income of $1.33 billion to $1.38 billion, growth of 7
to 11 percent.

Non-GAAP operating income of $1.675 billion to $1.725 billion, growth
of 8 to 11 percent.

GAAP diluted earnings per share of $3.47 to $3.57, versus $3.69 in
fiscal 2016. Fiscal 2016 earnings per share includes $0.65 net income
per share from discontinued operations.

Non-GAAP diluted earnings per share of $4.30 to $4.40, growth of 14 to
16 percent.

The company will announce second-quarter results and will issue the
first of two season-to-date unit updates for its consumer tax products
and services on Feb. 23. The second units update will be provided at the
end of the tax season.

About Intuit

Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.

Founded in 1983, Intuit had revenue of $4.7 billion in its fiscal year
2016. The company has approximately 7,900 employees with major offices
in the United States, Canada, the United Kingdom, India and other
locations. More information can be found at www.intuit.com.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses each measure, and
reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles, please see the section of the
accompanying Table 1 titled "About Non-GAAP Financial Measures."

Cautions About Forward-looking Statements

This press release contains forward-looking statements, including
forecasts of expected growth and future financial results of Intuit and
its reporting segments; the size of the market for tax preparation
software and the timing of when individuals will file their tax returns;
forecasts of total tax season results based on preliminary IRS and other
internal and external data points that may, in certain cases, be based
on small sample sizes; Intuit’s prospects for the business in fiscal
2017 and beyond; expectations regarding Intuit’s growth outside the US;
expectations regarding timing and growth of revenue for each of Intuit’s
reportable segments and from current or future products and services;
expectations regarding customer growth; expectations regarding changes
to our products and their impact on Intuit’s business; expectations
regarding the amount and timing of any future dividends or share
repurchases; expectations regarding availability of our offerings;
expectations regarding the impact of our strategic decisions on Intuit’s
business; and all of the statements under the heading “Forward-looking
Guidance”.

Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our actual
results to differ materially from the expectations expressed in the
forward-looking statements. These factors include, without limitation,
the following: inherent difficulty in predicting consumer behavior;
difficulties in receiving, processing, or filing customer tax
submissions; consumers may not respond as we expected to our advertising
and promotional activities; product introductions and price competition
from our competitors can have unpredictable negative effects on our
revenue, profitability and market position; governmental encroachment in
our tax businesses or other governmental activities or public policy
affecting the preparation and filing of tax returns could negatively
affect our operating results and market position; we may not be able to
successfully innovate and introduce new offerings and business models to
meet our growth and profitability objectives, and current and future
offerings may not adequately address customer needs and may not achieve
broad market acceptance, which could harm our operating results and
financial condition; business interruption or failure of our information
technology and communication systems may impair the availability of our
products and services, which may damage our reputation and harm our
future financial results; as we upgrade and consolidate our customer
facing applications and supporting information technology
infrastructure, any problems with these implementations could interfere
with our ability to deliver our offerings; any failure to properly use
and protect personal customer information and data could harm our
revenue, earnings and reputation; if we are unable to develop, manage
and maintain critical third party business relationships, our business
may be adversely affected; increased government regulation of our
businesses may harm our operating results; if we fail to process
transactions effectively or fail to adequately protect against potential
fraudulent activities, our revenue and earnings may be harmed; related
publicity regarding such fraudulent activity could cause customers to
lose confidence in using our software and adversely impact our results;
any significant offering quality problems or delays in our offerings
could harm our revenue, earnings and reputation; our participation in
the Free File Alliance may result in lost revenue opportunities and
cannibalization of our traditional paid franchise; the continuing global
economic downturn may continue to impact consumer and small business
spending, financial institutions and tax filings, which could negatively
affect our revenue and profitability; year-over-year changes in the
total number of tax filings that are submitted to government agencies
due to economic conditions or otherwise may result in lost revenue
opportunities; our revenue and earnings are highly seasonal and the
timing of our revenue between quarters is difficult to predict, which
may cause significant quarterly fluctuations in our financial results;
our financial position may not make repurchasing shares advisable or we
may issue additional shares in an acquisition causing our number of
outstanding shares to grow; our inability to adequately protect our
intellectual property rights may weaken our competitive position and
reduce our revenue and earnings; our acquisition and divestiture
activities may disrupt our ongoing business, may involve increased
expenses and may present risks not contemplated at the time of the
transactions; our use of significant amounts of debt to finance
acquisitions or other activities could harm our financial condition and
results of operation; and litigation involving intellectual property,
antitrust, shareholder and other matters may increase our costs. More
details about the risks that may impact our business are included in our
Form 10-K for fiscal 2016 and in our other SEC filings. You can locate
these reports through our website at http://investors.intuit.com.
Forward-looking statements are based on information as of February 8,
2017 and we do not undertake any duty to update any forward-looking
statement or other information in these materials.

Reflects estimated adjustments for share-based compensation expense
of approximately $81 million and amortization of acquired technology
of approximately $4 million.

[b]

Reflects the estimated adjustments in item [a], income taxes related
to these adjustments, and other income tax effects related to the
use of the long-term non-GAAP tax rate.

[c]

Reflects estimated adjustments for share-based compensation expense
of approximately $332 million; amortization of acquired technology
of approximately $12 million; and amortization of other acquired
intangible assets of approximately $1 million.

[d]

Reflects the estimated adjustments in item [c], income taxes related
to these adjustments, and other income tax effects related to the
use of the long-term non-GAAP tax rate.

INTUIT INC.ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated February 8, 2017 contains non-GAAP
financial measures. Table 1 reconciles the non-GAAP financial measures
in that press release to the most directly comparable financial measures
prepared in accordance with Generally Accepted Accounting Principles
(GAAP). These non-GAAP financial measures include non-GAAP operating
income and non-GAAP net income per share.

Non-GAAP financial measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. These non-GAAP financial measures do not reflect a
comprehensive system of accounting, differ from GAAP measures with the
same names, and may differ from non-GAAP financial measures with the
same or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method
from quarter to quarter and year to year. We may consider whether other
significant items that arise in the future should be excluded from our
non-GAAP financial measures.

We exclude the following items from all of our non-GAAP financial
measures:

Share-based compensation expense

Amortization of acquired technology

Amortization of other acquired intangible assets

Goodwill and intangible asset impairment charges

Professional fees for business combinations

We also exclude the following items from non-GAAP diluted net income per
share:

Gains and losses on debt and equity securities and other investments

Income tax effects and adjustments

Discontinued operations

We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit’s operating results primarily
because they exclude amounts that we do not consider part of ongoing
operating results when planning and forecasting and when assessing the
performance of the organization, our individual operating segments, or
our senior management. Segment managers are not held accountable for
share-based compensation expense, amortization, or the other excluded
items and, accordingly, we exclude these amounts from our measures of
segment performance. We believe that our non-GAAP financial measures
also facilitate the comparison by management and investors of results
for current periods and guidance for future periods with results for
past periods.

The following are descriptions of the items we exclude from our non-GAAP
financial measures.

Share-based compensation expenses. These consist of non-cash
expenses for stock options, restricted stock units, and our Employee
Stock Purchase Plan. When considering the impact of equity awards, we
place greater emphasis on overall shareholder dilution rather than the
accounting charges associated with those awards.

Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire an entity, we are
required by GAAP to record the fair values of the intangible assets of
the entity and amortize them over their useful lives. Amortization of
acquired technology in cost of revenue includes amortization of software
and other technology assets of acquired entities. Amortization of other
acquired intangible assets in operating expenses includes amortization
of assets such as customer lists, covenants not to compete, and trade
names.

Goodwill and intangible asset impairment charges. We exclude from
our non-GAAP financial measures non-cash charges to adjust the carrying
value of goodwill and other acquired intangible assets to their
estimated fair values.

Professional fees for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to complete
business combinations. These include investment banking, legal, and
accounting fees.

Gains and losses on debt and equity securities and other investments.
We exclude from our non-GAAP financial measures gains and losses that we
record when we sell or impair available-for-sale debt and equity
securities and other investments.

Income tax effects and adjustments. We use a long-term non-GAAP
tax rate for evaluating operating results and for planning, forecasting,
and analyzing future periods. This long-term non-GAAP tax rate excludes
the income tax effects of the non-GAAP pre-tax adjustments described
above, assumes the federal research and experimentation credit is
continuously in effect, and eliminates the effects of non-recurring and
period specific items which can vary in size and frequency. Based on our
current long-term projections, we are using a long-term non-GAAP tax
rate of 33% for fiscal 2017. These rates are consistent with the average
of our normalized fiscal year tax rate over a four year period that
includes the past three fiscal years plus the current fiscal year
forecast. We will evaluate this long-term non-GAAP tax rate on an annual
basis and whenever any significant events occur which may materially
affect this long-term rate. This long-term non-GAAP tax rate could be
subject to change for various reasons including significant changes in
our geographic earnings mix or fundamental tax law changes in major
jurisdictions in which we operate.

Operating results and gains and losses on the sale of discontinued
operations. From time to time, we sell or otherwise dispose of
selected operations as we adjust our portfolio of businesses to meet our
strategic goals. In accordance with GAAP, we segregate the operating
results of discontinued operations as well as gains and losses on the
sale of these discontinued operations from continuing operations on our
GAAP statements of operations but continue to include them in GAAP net
income or loss and net income or loss per share. We exclude these
amounts from our non-GAAP financial measures.

The reconciliations of the forward-looking non-GAAP financial measures
to the most directly comparable GAAP financial measures in Table 1
include all information reasonably available to Intuit at the date of
this press release. These tables include adjustments that we can
reasonably predict. Events that could cause the reconciliation to change
include acquisitions and divestitures of businesses, goodwill and other
asset impairments, and sales of available-for-sale debt securities and
other investments.